Silver pricing keeps sliding, dropping for the fourth day in a row and heading down toward $49.50 early Tuesday. Right now, the metal just can’t catch a break—investors are pulling back on hopes for a Fed rate cut in December. Recent comments from Fed officials haven’t helped either, making traders even more cautious. Everyone’s waiting to see what comes out of the Fed meeting minutes on Wednesday and the September jobs report on Thursday. Those numbers should give a better idea of where silver and other precious metals go next.
Fed Officials Signal Slower Approach to Rate Cuts
The CME FedWatch Tool shows markets pricing in only a 43% chance of a 25-basis-point Fed rate cut in December, sharply lower than the 62% probability expected last week. Fed Vice Chair Philip Jefferson noted that risks to the labor market now outweigh inflation risks, emphasizing that policymakers should move “slowly” on any further reductions. However, Fed Governor Christopher Waller struck a more dovish tone, stating the Fed should cut rates in December due to weakening hiring trends.
Supply Concerns May Cushion the Downside
Despite the bearish pressure, the downside for silver could be limited. Supply worries are resurfacing after the US Department of the Interior classified Silver, Copper, and metallurgical Coal as critical minerals due to their strategic importance. This designation opens the door for potential Section 232 tariff reviews, similar to those previously applied to Copper.
Overall, the Silver price forecast suggests continued weakness unless incoming US data softens the Fed’s stance.
